6 days ago
Trump Administration Weighs Broad New Tariffs on Semiconductors
The US government is thinking about charging extra fees on imported computer chips.
These fees could also apply to products such as laptops, game consoles and data-centre servers.
The goal is to encourage companies to build more chip factories in the United States.
Foreign companies might receive lower tariffs if they promise to invest in US manufacturing.
The plan is still being discussed and could change.
Technology companies say new factories are very expensive and take a long time to build.
Until then, the United States would still need chips from places such as Taiwan, South Korea and Malaysia.
The report has not been independently confirmed by LiveMint, and officials have not immediately commented.
The Trump administration is considering a broad new tariff package targeting semiconductors and related electronics, Politico reported.
Potentially affected products include laptops, gaming consoles and data-centre servers that rely on semiconductor components.
Commerce Secretary Howard Lutnick supports possible tariff relief for foreign companies that invest in US semiconductor manufacturing.
Officials are considering a gradual rollout, but the proposal could change substantially in coming weeks or months.
Technology companies warn that US reliance on Asian chip suppliers would continue while domestic factories take years or decades to build.
- Who
- The Donald Trump administration, including Commerce Secretary Howard Lutnick, is considering the measures; US technology companies and Asian semiconductor suppliers could be affected.
- What
- Officials are weighing a new, potentially broad tariff package on semiconductors and electronics that use them.
- Where
- The proposed tariffs would apply to imports into the United States, while related manufacturing investments would occur in the United States.
- When
- Politico reported the discussions on Thursday; the proposal could change over the next few weeks or months.
- Why
- The administration says the measures could encourage domestic chip production, strengthen supply chains and address national-security concerns.
Supporters of domestic chip protection
Technology industry and supply-chain critics
Purpose of tariffs
Supporters of domestic chip protection
The administration says tariffs can encourage semiconductor manufacturing to return to the United States and help protect national security.
Technology industry and supply-chain critics
Industry representatives support increasing US manufacturing but warn that tariffs could affect companies that remain dependent on imported chips during the lengthy factory-building process.
Speed of reshoring
Supporters of domestic chip protection
The administration is prioritizing domestic production and says its policies have already secured hundreds of billions of dollars in investments in the sector.
Technology industry and supply-chain critics
Industry representatives say advanced chip plants require billions of dollars and can take several years or even decades to build, so imports will remain necessary in the meantime.
Supply-chain security
Supporters of domestic chip protection
Trade hawks argue that dependence on Taiwanese semiconductors creates national-security risks, particularly in the event of a Chinese invasion of Taiwan.
Technology industry and supply-chain critics
Technology-sector concerns focus on already limited supplies of advanced chips and the risk that additional trade measures could complicate access while demand rises from artificial-intelligence data centres.
Key facts
- Reported proposal
- A broad tariff package targeting semiconductors and potentially related electronic products.
- Potentially affected products
- Laptops, gaming consoles and data-centre servers.
- Possible tariff relief
- Foreign companies could receive relief based on commitments to invest in US semiconductor manufacturing.
- Implementation
- Officials are considering introducing the tariffs gradually.
- Advanced-chip production
- Taiwan accounts for more than 90% of global production of the most advanced semiconductors, according to the report.
- Current uncertainty
- LiveMint could not independently confirm the report, and the White House and Commerce Department had not immediately commented.
Quotes
Kush Desai
White House spokesperson
“The Trump administration remains focused on delivering more investments and economic relief for the American people while safeguarding our national security.”
livemint.com
Sources
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